tv [untitled] September 10, 2010 12:00pm-12:30pm PST
the organization, the folks the service organization. i wish them all well and on behalf of my colleagues here. >> mr. president, the next item is item 7, report of the general manager. >> first official item of is the wsip program update. >> i'm sorry, i wanted to know the passing of ann schneider, who was our water ice councilperson for 20 years, and is a tremendous loss, not just to us, but the other people she worked with and the legal community in california general. she was a meticulous voice, and in the world of water rights, which can be my numbingly tedious, she had the stamina to
put together a force -- which can be mind-numbingly tedious, she had the stamina to put together for us a body of water rights which will serve us long into the future. she was a fierce and effective advocate, somebody that you really wanted to have on your side, and on top of that, she was many other things. she was a long distance bicyclist, took trips over a range of mountain ranges and over distances that most of us just would not contemplate, climbed mountains on six continents as it turns out, was a member for several terms of the assembly association board. did work with them and some successor organizations on a pro bono basis. assets and resources at the national parks system, and very much respected within the california water community. she passed about a week ago, and
she will be very much missed. thank you. commissioner crowley: michael, we put on our agenda a moment of silence? >> we will do that. commissioner crowley: all right, general manager. >> first small item is just to note that if you look up the street, the crane is up of 525 fulton gate, and that always feels like movement. first item is the wsip update from julie. >> good afternoon, commissioners. i'm pleased to be here today to share with you the highlights of the fourth quarter for fiscal year 2009-2010. this covers april four through july 1. what i will be presenting today does reflect the changes we have made to our quarterly report.
i'm not sure if you had a chance to look at it since it was distributed. our goal, of course, is to give you a useful tool that will help you monitor our progress better, so i would very much welcome your feedback. this is something that will keep evolving and improving over time. i also want to thank my program controls manager who is here today. her and her team did an outstanding job trying to get this report in less time with a new format, so that is very much appreciated. i think you have received the revised copy of my presentation. we have made changes to it since it was included in your packet, so i would encourage you to follow along using a revised copy, instead of what is in your binder. starting with the status of our local projects, this is a new
format here. what you see in parentheses are the number of projects remaining in these trades. also shown on the slides is the total project value for those projects in each phase. again, we have only one local project remaining, and that is the san francisco east side water project. note the fact that we only have eight of 40 local projects that have yet to enter construction, and one of those eight is in bid and award. during the quarter, the harbour park recycle water projects submitted an award, and the pump station upgrade project moved into construction. we also completed construction on three of our local projects during our local quarter. the biggest piece of the pipe here is in design for the local projects, and i would like to point out that two of those five
projects our water supply projects accounting for 240 million. we also have the project with $56 million that is still in design. the division of safety of them has jurisdiction over this project, and there are some issues we are trying to work out with them. construction has been completed on 27 projects with a total value of $180 million. similar formats for our regional projects, and i'm happy to report that the biggest piece of the pipe here is construction. we currently have $1.3 billion worth of total project costs in construction. only nine of our 46 regional projects remain in planning or design. we also have over $500 million worth of projects in big and
award, so those will also move quickly to construction. during the reporting quarter, the upper alameda creek filtering project went from planning to design. the crystal springs upgrade project reached the bid and award phase. the subtle valley water treatment project -- the sunol valley water treatment project be moved to close out. construction has been completed on 15 projects with a total project of $183 million. so here is a summary of the overall cost and schedule variances of the program level, and what we are doing is we are basically comparing the variances from the third quarter to those of this reporting quarter, the fourth quarter. i would like to point out that the black figures are good, as they reflect costs of
underwriting and early completion, so if we start by looking at the second and third columns, both of 40 regional project. our cost forecast is now $94 million under run, which is $56 million in additional cost savings compared to last quarter. with respect to the last quarter, we forecasted a reduction of $64 million in hard costs and an increase of $8 million in soft costs. there is no change in our projected completion date at the regional level. we are still planning to complete the regional program by the approved date of december 15, and calaveras dam project is still our last project to be completed. we are forecasting an overrun on the local program of $35 million, whichuvbq$ is $3 milln more than the cost overrun
reported last quarter. the additional cost here is due to additional scope to the san francisco website recycle water project. as far as scheduling a local extension or delay of 13.3 months comparedz the approved schedule, and this is due to the san francisco west side recycled water project. if you take all the water projects out of the equation, we will complete our local projects 13 months earlier in october of 2014. lñ new chart that we included that compares the wsip total forecasted cost over time, and that is shown compared to the program approved budget shown in red. this chart includes both local and regional programs, an can see that for the last three months, we are trending -- our
forecasted cost is trending under the approved cost of the program, and as of july 1, our forecasted cost is actually at the program level $53 million under approved. this is a summary of the bids we have received during the reporting quarters. we received -- we awarded three contracts, and the trend for favorable bidding climate's still seems reviewed all three contracts were awarded at a value lower than our engineer estimates. in this case, all three contracts had a total value of $381 million, which is $60 million or 16% of the costs estimated for that work. one of the highlighted achievements -- the planning commission certifies the crystal springs -- sandra as
transmission upgrade it eir in june. -- crystal springs/san andreas transmission of great. also, a sign of the increased construction activity in the program is the fact that we have a fivefold increase in the construction hours that were logged on the program during the quarter. we actually have now surpassed the 1 million-hour mark, and construction workers have earned $36 million on our wsip project so far. although our workload is increasing and lot in the field, the teams continue to excel. we have said the incident and lost time rates well below industry average. our incident rate currently stands at 1.7 when the industry
average is 4.7. we are also doing very well on incremental compliance, out of our quarter,8í we had incidence among compliance that were under 1%. again, very much in line with industry standards. by the way, i think your copy had a typo theresr -- it's a 93, but it is3d actually 99% compliance. system shutdowns during the reporting period. we now have completed 30 of our 108 shutdowns for the program. also, a lot of media coverage on a program -- we have had very favorable articles in san francisco business times as well as water world, and the engineering news record, which is a?a publication in the indusy is actually going to be visiting
our site next month, so we actually do need to get additional coverage there. we will be inviting you soon to ground breaking events for the bay tunnel that will be taking place in mid-september, and that will be with general manager harrington and the mayor, so more to follow on that. we are still working through some challenges at the pre- construction level, and i wanted to share with you some of the ways we are trying to constructively try to deal with some of these challenges. with so many projects now getting close to construction, the resourced agencies are receiving a lot of permit applications from us and trying to keep all these permits on track. it has been challenging, but we are working very closely through our interagency task force to try to help them make
priorities. the three projects that are here are those that we are currently focusing on to make sure that there is no delay due to any permitting issues. on the regional groundwater project, i wanted to highlight that the challenges are associated with the need to conduct additional offer for studies as well as the need to acquire 18 different right of way tight -- type of transactions. although all of that is ongoing, it has not added any additional time extension as of this fourth quarter. wanted to also point out a challenge on the seismic upgrade of pipeline three and four. new studies performed by our design consultants have revealed that pipeline four could fail under a major seismic event.
because of those studies, we have had to revise our design to include additional improvements in that area. we are also having to relocate some lines, so those changes have extended the construction period for the project by three months and added $3 million to the project cost. finally, i wanted to highlight the fact that we are continuing through our real estate staff to work closely with the sec -- with the lessees at the horse stable prior to construction, which is scheduled for the beginning of next year. construction challenges -- we issued our first ncp on the
irvington tunnel project in july. what we're doing, because of the permitting issue that i talked about earlier, some of these permits are taking longer to secure. what we're doing is following an approach here where we are issuing --h we negotiated with the contractor to issue multiple ñrthe first allows the contacted to begin for chairman, some metals, and some field survey. we can then secure land and issue an additional for the f -- the first allows the contractor to begin procurements, submittals, and some field surveys. one challenge we are encountering on the bay division pipeline 5 project, we have encountered a high concentration
of nickel in some of the soil we dug up for trenching activity, so that will be requiring special hazardous material handling and compliance with more stringent disposal requirements. also on that project, we have m site that will require us to tunnel under that site, which, ofrhvok course, is going to bee costly. we also have five other sites withó archaeological discoveries that could impact construction, so we are monitoring those very carefully. we are trying to work through some last minute changes, skit under control of facilities with our operations map. some late changes have impacted our construction activities, and i have asked our engineering staff to work closely with the water enterprise engineering staff to try to resolve this issue by the end of the quarter. we need to do a better job act
identifying control needs earlier on -- better job of identifying control needs earlier on. i feel confident that we will be able to resolve the issue. finally, i wanted to point out that there are two projects with change orders over 10%. in the case of the lawrence livermore, we have an item in today's agenda seeking your approval for a last change order on a project that will bring both cost and schedule of of the 10% limits that requires your approval. in the case of the crossover contract, we have not reached the 10% mark, but after negotiation of an outstanding change order, we will, and i intend to come before you in september to seek approval on that particular change order. as usual, there is a summary
here of the calaveras replacement project. we have completed what we refer to as the 100% draft design submitted. we have yet to complete environmental review. that has been submitted to all our project team members, including the cm team. we have retained the services of the beach as our consultant, and they were given notice to proceed early august, so the cm team will initiate a review of those documents. all other activities on the eir and permitting front is continuing as planned, and we are on track at this point to be able to certify this eir by the end of the year. a few weeks ago, general manager harrington and i visited a
number of our project sites, and we were quite astonished by the amount of progress in the field, and i wanted to share some of what we saw. this is a picture that you will not be able to see once this project is completed. it is the alameda west portal with the project connects to the coast range tunnel. the contractor will be installing the piping across the calaveras fault zone, and will start tunneling under alameda creek. we have completed three of the shutdowns required for the project, which includes a lot of our scheduling risk, and we are on track to essentially complete this project by september 2011. this shows the installation of the 72-inch baking division pipeline 5. that segment is now 27% complete as it makes its way through the
residential area. work on that project this summer has focused on completing improvements across schoolyards and creeks, and we are actually conducting worked on that segment at 12 different sites simultaneously to facilitate the work. similar work is taking place on the peninsula as we go across a number of residential neighborhoods, parks, schools, and key intersections, you can see that we are literally digging trenches at residents; front doors -- residents; front doors. it is a very tight right away, which makes our work very challenging, and we anticipate that the pipeline installation on both sides of the day will be completed in the spring and summer of next year. on the peninsula side, we are 15% complete.
the new crystal springs bypass project is truly a success story in my view. we have completed now the tunnel excavation as well as the installation of lining. what you see here is a 96-inch pipe that is used for the lining being lower in the tunnel, and that was actually completed in half the time that was planned. we are now 80% complete on that tunnel project, and we are right now doing major planning for a shot down in early 2011. the university retrofit is now 55% complete. this is the second largest reservoir in the city. what i would like to point out here is that the contractor for this project has been a leader in apprenticeships hiring, and we have also done very well on citizen complaints for a project of this size in an urban area.
we have only received two complaints, and that is pretty amazing, i think. it reflects the great work by our team and contractor. substantial completion on the project is only seven months away. the last two slides on my presentation in response to a recommendation by the independent review panel, which wanted us to track milestones at the program level. what you see on the second and third column is a comparison of what we had planned to do and what we had completed. for this reporting quarter, we completed nine of our milestones. the two environmental approvals we missed were for hunters point reservoir and the, station, and
in both cases, small amounts of asbestos at the project site required that we do additional work, but this delay will not impact in any way our construction. we also had one final completion milestone that was missed, and that was for the pump station, and that was due to requirements imposed by the fire department for our emergency generator. we are going to be completing that work in the next week, and the pump station is operational, it is just a matter of the closeout phase being the lead here -- being delayed. we did better on the regional program. only milestone missed was the big advertisement that have the attached reserve program, and there were research agency, that
required we modeling, lead an advertisement for that project is now forecasted for august 14, and that completes my presentation. commissioner moran: some comments. first of all, this is the first quarter with a new format, and i found it greatly improved. wanted to pass that on to you. i am a total ban [inaudible] they make life a whole lot easier. i think the underlying report, especially with the graphics, is clear enough that the project level detail really is not necessary. that is one commissioner's opinion. but i thought the rest of it was so clear and easy to get through that it did not really need the
treatment of the cover memo. the kind of thing that i think would benefit in the cover memo is very much the discussion you just went through in terms of from your level what the issues are that you are wrestling with at the moment, and i think if there was a place for that in writing, that the cover memo might help you with that. subsequently, one thing that really, i guess, presented itself more clearly than it has before, just the way in which some of the project schedules are bunching toward the end. both of the reports really portrays that quite vividly. that would seem to present some management challenges that in the original challenges were not present o. i ask julie about this earlier,
and she gave me a great response. i would like to tell the commission what you need to do and are doing to manage that kind of circumstance that might not have been present if things were scheduled going normally. >> i think, of course, the activities that take place at the end of the program are construction activities. what is key here is to have a very robust construction management program, and as you know, we have spent a lot of time and resources putting together a program that we feel is scalable and that will promote consistency, and what we have done is we are basically dividing up the work in the region and in some cases, on the big projects, it is even broken down at the project level, so by bringing in these 10 individual teams with the help of consultants, we are breaking down the work. i think i would be a little more worried if we had the same team trying to handle all the work,
but by breaking it down by region and project, the issue then becomes an issue of consistency, and that is where the pcm program manager is silky. in my view, i think we have put in place something that can handle that. so far, as we have progress, i have not seen a decrease in performance, and we will be monitoring that very carefully. with that said, we will be, by the end of the year, having an audit team that is going to look at our construction management performance, and we will bring them back probably two more times -- every nine months or so -- to make sure that we are not slipping back. just by the nature of the system we put together and the way we organize the program, i think we are well positioned to be able to get through the ramp up without any